Technology
Strong Alibaba IPO Demand May Raise Price and Shares for Sale
September 12, 2014 11:30 am
Last Updated: April 28, 2020 5:36 am
Source: Courtesy of Alibaba
Both Reuters and The New York Times are reporting that sources have said that the proposed price range of $60 to $66 per share has generated no pushback. Raising the price or adding to the number of shares would further widen the gap between Alibaba’s currently expected IPO take of $21.1 billion and Facebook Inc.’s (NASDAQ: FB) $16 billion IPO.
We have already noted the long list of potential risks that Alibaba investors, including the limited impact shareholders and the board of directors, will have on running the company.
Company founder and CEO Jack Ma is selling 12.75 million shares and reducing his stake in the company from 8.8% to 7.8%. Yahoo! Inc. (NASDAQ: YHOO) is selling 121.74 million shares, reducing its stake from 22.4% to 16.3%. The other major shareholder is Japan’s SoftBank, which owns 797.74 million shares (34.1%) and is selling none of them.
Unless the offering is changed, Alibaba will have 2,465,005,966 ordinary shares outstanding after this offering (versus 2,341,929,035 ordinary shares outstanding immediately prior to this offering).
Sponsored: Tips for Investing
A financial advisor can help you understand the advantages and disadvantages of investment properties. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
Investing in real estate can diversify your portfolio. But expanding your horizons may add additional costs. If you’re an investor looking to minimize expenses, consider checking out online brokerages. They often offer low investment fees, helping you maximize your profit.
Editors' Picks
